What the Future Holds
Brazil Must Prioritize Itself
Brazil's taxing system has caused it to miss its greatest opportunity yet, as companies are heavily taxed, and all taxes make up about 36%, the second highest in the world of emerging nations after Fernandez's Argentina. On top of that, Brazli is giving pensions like Southern Europe while spending only about 1.5% of GDP on infrastructure when the global average is 3.8%. The consequences are seen in a comparison with a Mato Grosso soybean farmer compared to an Iowa soybean farmer, as the Mato Grosso farmer spends 25% of the value of the product getting it to port while the Iowa farmer only spends 9%, also showing that such prices could be decreased and costs could be decreased if the transportation infrastructure was improved. Already without the strong infrastructure Brazil is the third largest food exporter in the world, and despite the government slowing down the process and increasing costs by 2020 Brazil is destined to be a major oil exporter. If we look back at the finance section we can see that Brazil may very well end up going into a recession. A recession occurs when a trough is prolonged, and so such causes cyclical unemployment, which is unemployment caused by a decrease or deletion of income due to other people who provide your income being unemployed.
Brazil's Great Potential
Brazil is at a stage equivalent to the US around the time of WWI, and many innovations have been made since then. This gives Brazil a great advantage because all it has to do is apply those innovations to its own economy and it will reach the state the US is in faster than the about hundred years the US itself took, and this means Brazil's GDP could grow as fast as 10-12% over a consistent period of time, rather than the short peak of 9.3% growth in 2010 as seen on the GDP page. However, for a true advantage like Germany and Japan obtained post-WWII, Brazil may have to add some of its own innovations and have more high productive formal labor such as in housing construction, banking, airlines, and utilities. This relates to labor force trends, as advancing nations go to more productive fields and improve their standard of living and GDP per capita. Yet, while most developed countries faced the same situation Brazil is in, Brazil needs a lot of capital to sustain the growth rate necessary for such a change to occur. If Brazil does turn more to building up the nation in areas such as infrastructure as stated above, then Brazil can quite easily get its growth rate much higher than the West ever expected.
Brazil's taxing system has caused it to miss its greatest opportunity yet, as companies are heavily taxed, and all taxes make up about 36%, the second highest in the world of emerging nations after Fernandez's Argentina. On top of that, Brazli is giving pensions like Southern Europe while spending only about 1.5% of GDP on infrastructure when the global average is 3.8%. The consequences are seen in a comparison with a Mato Grosso soybean farmer compared to an Iowa soybean farmer, as the Mato Grosso farmer spends 25% of the value of the product getting it to port while the Iowa farmer only spends 9%, also showing that such prices could be decreased and costs could be decreased if the transportation infrastructure was improved. Already without the strong infrastructure Brazil is the third largest food exporter in the world, and despite the government slowing down the process and increasing costs by 2020 Brazil is destined to be a major oil exporter. If we look back at the finance section we can see that Brazil may very well end up going into a recession. A recession occurs when a trough is prolonged, and so such causes cyclical unemployment, which is unemployment caused by a decrease or deletion of income due to other people who provide your income being unemployed.
Brazil's Great Potential
Brazil is at a stage equivalent to the US around the time of WWI, and many innovations have been made since then. This gives Brazil a great advantage because all it has to do is apply those innovations to its own economy and it will reach the state the US is in faster than the about hundred years the US itself took, and this means Brazil's GDP could grow as fast as 10-12% over a consistent period of time, rather than the short peak of 9.3% growth in 2010 as seen on the GDP page. However, for a true advantage like Germany and Japan obtained post-WWII, Brazil may have to add some of its own innovations and have more high productive formal labor such as in housing construction, banking, airlines, and utilities. This relates to labor force trends, as advancing nations go to more productive fields and improve their standard of living and GDP per capita. Yet, while most developed countries faced the same situation Brazil is in, Brazil needs a lot of capital to sustain the growth rate necessary for such a change to occur. If Brazil does turn more to building up the nation in areas such as infrastructure as stated above, then Brazil can quite easily get its growth rate much higher than the West ever expected.